Post on 13-Apr-2017
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ACMEUS Telesales Growth Initiative
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“What is the role of Telesales to
support the growth of SaaS and high
value customers?”
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EXECUTIVE SUMMARY
SBI has assessed the role of Telesales across:
4 Lenses of Discovery: Corporate, Customer, Field, Market
Sales Execution Framework: Planning, Engagement, Support
Overview: Telesales has strong leadership and has well defined strategy. Opportunity to improve performance through stronger tactical execution
5 major opportunities have been identified:
1. Align talent and sales functional strategies2. Improve conversion by reorganizing sales team and optimizing
processes3. Focus selling initiatives in customer base to drive attach and
maximize4. Reduce High Value Churn by building Customer Success org5. Follow-Up on No Sales by creating closed loop process for nurturing
and developing
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ACME IS LEVEL 3
15%
DESCRIPTION
The Revenue Growth Maturity Model (RGMM) is used by organizations to assess how
they rank in terms of strategic alignment today, and helps them pinpoint where they
would like to be assessed in the future.
OUTCOMES
ACME has been assessed and plotted along the 5 Levels of the Revenue Growth Maturity Model:
•Level 1 – Chaos: Corporate Strategy documented, but Functional Strategies do not exist
•Level 2 – Defined: Corporate & functional strategies documented, but not implemented or aligned to each other
•Level 3 – Implemented: Corporate & functional strategies documented and implemented at functional level but not aligned
•Level 4 – Managed: Corporate & functional strategies documented, implemented and aligned internally to each other
•Level 5 – Predictable: Corporate & functional strategies documented, implemented and aligned internally to each other and the market
There is a strong correlation between the assessed level and two key valuation metrics – Customer Acquisition Costs (CAC) and Customer Lifetime Value (CLTV). As maturity level improves, CAC is reduced and CLTV is improved.
Benchmark data indicates companies that move from Level 3 to Level 5 on the RGMM reduce their CAC by upwards of 22% and increase CLTV by 18%.
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ACME IS LEVEL 3
Level 3 Description ACME Application
Corporate and functional strategies have been defined through an annual planning exercise and implemented along functional silos.
Functional strategies appear to be in line across functional areas (Corp, Product, Marketing, Sales, Talent). Evidence of functional strategies being silod and not aligned (e.g., product not aligned with BU sales or marketing efforts, talent not aligned with sales)
Each level in the function understands their strategy and abides by it.
Each cross-functional leader has a charter
Organizations can point to behavior changes in each of the functions.
Since re-org agents and managers have taken on new actions and processes, and are adopting the new way
Past accomplishments are repeatable; management can truly depend on their execution.
Performance of inbound and outbound teams are consistent across Tucson and Fredericksburg, validating that methods and processes are consistent and repeatable
While friction within each function has been removed, it still exists among adjacent functions
Telesales working to identify how it supports the BU when selling a SaaS offering that is trending away from phone sales to online purchasing
Customers are still confused by their experiences (non-alignment with external market)
Customers seek product selection advice from Telesales, even from online channels. Feature differences given increased online price point is confusing to the market. Non-integration of products from customer perspective (multiple billings) causes frustration.
BU ObservationsTelesales observations
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THE VALUE OF STRATEGIC INTERNAL AND EXTERNAL ALIGNMENT
CAC REDUCTION BY LEVEL
(estimated)
% OF REVENUE INVESTED ON CORE STRATEGIC AREAS
When ACME achieves strategic alignment, Customer Acquisition Cost (CAC) declines, and with
new subscription focus, Customer Lifetime Value (CLTV) increases.
LEVEL 3
(Current)
LEVEL 4 LEVEL 5
$292 $245 $204
-16% -30%
SALES UNDERFUNDED FROM TYPICAL B2B ORG REDUCE CAC INCREASE CLTV
CLTV INCREASE BY LEVEL
(estimated)
LEVEL 3
(Current)
LEVEL 4 LEVEL 5
$1,470 $1,538 $1,715
ACME TYPICAL B2B
PRODUCT
MARKETING
SALES
TOTAL
12.2% ($37.7M/309M)
11%
5%
19%
35%
12%
19%
5%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
INTUIT (SBG) TYPICAL
SALES MARKETING PRODUCT
$292
$245
$204
LEVEL 3
(Current)
LEVEL 4 LEVEL 5 0%
2%
8%
13%
26%
LEVEL 1 CURRENT LEVEL 3 LEVEL 4 LEVEL 5
Source: FY17 Channel sales Strategy, LTV to CAC for Rob Offsite v2.ppt.
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US TELESALES HAS A SOUND STRATEGY, BUT THERE ARE OPPORTUNITIES TO IMPROVE EXECUTION
INEFFECTIVELY
DIE QUICKLY
A poor plan executed brilliantly
THRIVE
A brilliant plan executed brilliantly
DIE SLOWLY
A poor plan executed poorly
SURVIVE
A brilliant planexecuted poorly
EFFECTIVELY
INEFFI
CIE
NTL
YEFFIC
IEN
TLY
STRATEGY –
DOING THE RIGHT THINGS
TAC
TIC
S –
DO
ING
TH
ING
S R
IGH
T
Great Strategy, Focus and Direction Opportunity to Improve Tactics and Execution
Drop in IB and Supplies that would result in -12% CAGR. Need for improved Talent execution (Compensation aligned with business objectives, Sales Competencies developed for talent management, and improved coaching effectiveness
Set strategy to get more from customers via OB and Accounting channels, and Saves. Result is +5% CAGR
Opportunity to improve conversion through improved sales tactics (Ecosystem sales model, SaaS Product fit discovery, etc.)
3 year channel vision around consultative sales process, unlocking SaaS ecosystem, and growing High-Value
Telesales is currently only partially leveraging its 4.5M customer base to drive HV customer growth and is well below SaaS benchmark
Strong Leadership in with good business understanding Following-up on High-Value No Sells. Currently no defined lead nurture programs exist
Sales talent largely capable of executing strategy with improved process and coaching
Tactics are not in place to reduce churn. Churn in SBGs highest value customer segments (50% of revenue) are well over benchmark
Created 4-Step Outward-In Sales Process
B-
Strategy Tactics
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USING THE SALES STRATEGY FRAMEWORK, WE ASSESSED US TELESALES AGAINST THE FOLLOWING CRITERIA
Aligned to Best Practice
Gap to Best Practice
Significantly Off Best Practice or Non-Existent
4 STEP METHODOLOGY
PLANNINGPlanning phase is where you develop sales and data plans that will make
the number. This will help you plan for how you will reach your goal. With the
right plans in place, you improve your chances of success
ENGAGEMENT
Engagement is where you define how the sales team is going to interact
with prospects and customers. The process definition continues through the
sales process that must match the way buyers turn their initial interest into a
decision to buy
ORGANIZATION
Organization is where you set up the correct organizational structure so the
right people are in the right roles to execute the processes. This is where you
figure out how to deploy the resources you secured in the Planning Phase.
Then make sure they are the right resources to execute the processes
defined in the Engagement Phase
SUPPORTSupport is where you help the Sales team’s effectiveness by removing their
non-selling responsibilities and streamlining those that can’t be off-loaded
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What do we need to make it successful? Quartile all reps, develop PBX
routing system to ramp an increase in calls to the best reps
What is it?
Route calls to reps available in queue with highest revenue per call.
Motivates reps to focus on revenue per call and results in significant
sales improvement
Why are we doing it?
This has a significant revenue impact for Telesales and is a best-
practice among call centers
Who should own it? Sales leadership
What will it cost and what is the impact?
There is an $8M revenue increase when shifting 25% of the call
volume from Tier 2 consultants to Tier 1 (Best), Tier 3 to Tier 2, and
Tier 4 to Tier 3.
What are the key metrics/KPIs?
Call volume per consultant, revenue per call, call type, handle time,
abandon rate
55%
Who is doing this?
55% of top performing call centers surveyed have some sort of performance or skills based call routing
Source: YTD Calls and Sales Aug-May 2016 Andrew Taylor,
Bottom
Tier
Top Tier
89,036
144,204
113,243
116,576
66,777
130,412
120,983
144,887
Tier 4
Tier 3
Tier 2
Tier 1
New Routed Totals Current Call Total
25% of calls are transferred from each Tier.
Growth + Cost -
SaaS
High-Value
2
SMART CALL ROUTING WILL GENERATE $8M IN ADDITIONAL TELESALES REVENUE
8
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32%
30%
28%
10%
Call Volume
Breakdown by
Category
What is it?
Capture critical data on “tire-kickers” (no 1st call closes) to enable
lead nurture process to get customers back into sales funnel
Why are we doing it?
68% of customers don’t buy initially. 30% are redirects. 28% of
customers have an opportunity for future purchase. 10% of
customer are not product fit. Lead nurture is low cost and keeps
customers engaged and in-funnel
Who should own it? Marketing
What will it cost and what is the impact?
Base don benchmark there is a 10% or greater impact to an
automated lead management system which equates to $15M in
additional revenue to IB and OB teams
What are the key metrics/KPIs?
Percent (%) of recipients who request further nurture content, SQL, MQL,
lead to conversion rates, trial conversion rates ($ and %), campaign
MQL goals, email blasts open rates, and upgrade and retention rates
Companies that automate lead
management see a 10% or greater increase
in revenue in 6-9 months.
(Source: Gartner Research)
Benchmark:
Buy
Re-directs
Don’t
Buy
No Prod Fit
What do we need to make it successful? Continue developing ELOQUA
to build out tracking mechanisms for web/OA, phone calls, and
chat leads
$449
$493
Increase in IB/OB Revenue
by 10% over 3 Years
IB & OB FY'16 Rev 10% Increase
Growth + Cost -
SaaS
High-Value
5
DEVELOPING LEAD NURTURE PROCESS WILL GENERATE $49M IN ADDITIONAL TELESALES REVENUE
14
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LEV
EL
OF
EFFO
RT
HIGH MEDIUM LOW
MO
DER
ATE
HIG
HVE
RY H
IGH
TACTICAL PRIORITIZATION
Generalist Sales Org 145
Call Routing to Top Reps 8
Variable Comp, $/Sale
221
Pipeline Nurture Process 49
Combine IB/OB Teams 17
Improved Coaching 148
SaaS Qualification/
Data Capture 114
Simplify Systems26
Targeted Trial Conversions 11
Reduce Call Redirects 2
LEVEL OF IMPACT
Hiring tied to Sales Competencies 44
Stand-Up Customer Success
Org 60
Onboarding Cross/Up-Sell 6
Sell into Base to increase HV 247